AMAs September 15, 2020

My wife's a certified accountant ask her anything!

Paolo @Paolo

Hi all, I convinced my wife to answer any questions related to finance, in particular Startup financial questions. If you have one question you would like to ask post it here. I'll get her to answer it.

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    I am from Latin America with and LLC in US, I dont have any employee or live over there, what taxes do I have to pay and what forms do I have to full fill.

    I just use the LLC for payment processors.

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      In general, not taxable are:

      Personal services performed from abroad
      Selling digital products
      Web design etc.
      Selling physical products if the shipping point is from outside of the US.

      Any business transacted from within the US would be taxable. This potentially includes shipping from Amazon. Personal services performed from within the US are taxable as well.

      Example: Foreign software company without US office or representative
      A Mexican software company is performing programming/design work for US clients. It is based in Mexico and has no US office or sales agents. All sales are done over the phone or online.

      The company can open an LLC to receive payments in USD in a US bank account. The work is performed in Mexico and the owners are non-US citizens/residents, who are not taxed in the US. Therefore, the LLC income is not taxed in the US as there are no offices or dependent agents in the US.

      Hope that helps.

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        @Paolo Thanks for your replay, one last question, if I have a LLC and I am not taxable, what are the forms that I have to present or fill each year or do I have to do nothing? Do your wife give the service to small business with a LLC like that ? or what service she would recommend me.

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    I have an LLC that use for my consulting business. I was planning on just operating my SaaS project under a tradename/dba I created if/until another structure is warranted. Any issues/downsides/considerations?

    Also, I am thinking of doing a "My wife is smarter than me, ask her anything" but I don't think she would go for it.

    Regardless if you get to my questions, tell your wifey - Thanks!

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    If you're working from home now can you deduct your office, etc from your taxes? What about expenses for upgrading internet connection, etc?

    1. 1

      You can deduct if the workspace is where you mainly (more than 50% of the time) do your work.

      You use the workspace only to earn your employment income.

      You also have to use it on a regular and continuous basis for meeting clients, customers, or other people in the course of your employment duties.

      In Canada, the employer would need to fill out a Form T2200, Declaration of Conditions of Employment. If you're not from Canada you'll have to do some googling.

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        Thanks for the insight/reply!

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        Can this be done even when you're a W2 employee or is that for 1099 / self-employed only?

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    How do I manage multiple accounts with different percentage of shares and tie it back to a parent account? This has been bugging me for months.

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    Does she ever deal with situations outside of the United States?

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      We are actually based in Canada so yes.

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    This comment was deleted 4 months ago.

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      Yes, you can. I advise you to research what determines resident vs non-resident status and what that means in terms of health care, benefits, etc.

      Info can be found here: Resident Status

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    This comment was deleted 4 months ago.

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